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FIN 325 Saint Leo University Conflicts in Business Discussion


Is there a conflict between maximizing shareholder wealth and never paying bribes when doing business abroad? If so, how might you explain the firm’s position to shareholders asking why the company does not pay bribes when its foreign competitors in various nations clearly do so? Please explain how Saint Leo’s core value of responsible stewardship is reflected in your answer. provide ref

Introduction of DQ8

This situation is what most US firms face, unfortunately, as soon as they venture to various markets overseas-whether they try to sell their products overseas, or try to manufacture their products overseas-in various countries where the local laws do not prohibit or penalize such behaviors.

The Foreign Corrupt Practices Act (FCPA) was passed in the 1960s are a result of the large US oil companies obtaining an unfair advantage over smaller US-based oil companies in their dealings with foreign governments over oil drilling rights and extraction.

Despite this Act being around now more almost 50 years, the Justice Department presently is investigating over 100 US firms for alleged violations of the FCPA! The list of firms being investigated includes the ‘Who is Who’ in American businesses, too.

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